If demand is strong, the deal can be increased by up to another 10 billion rupees, with the proceeds aimed at helping the bank to boost its capital ratio, said the sources, who declined to be named as the details are not public.

The bank is looking to sell the shares at 154.65 rupees each, said one of the sources. Union Bank shares closed at 157.60 rupees on Thursday.

The bank, in a stock exchange filing earlier on Thursday, confirmed it had launched a share sale, but did not give details of the fundraising plan.

As part of the government’s more than $32 billion recapitalisation plan for state banks, the lenders are required to raise about 580 billion rupees from share sales by March 2019.